Liquity/Tether Market Overview: Bearish Consolidation and Rebound Signals

• LQTYUSDT posted a 24-hour low of 0.717 and closed near 0.721, following a sharp decline after midday ET.
• Volume surged over 21,771 on the 15-minute chart, confirming bearish momentum amid a key Fibonacci level break.
• RSI and MACD signaled oversold conditions, suggesting potential for a short-term rebound or consolidation.
• Volatility expanded as price moved outside Bollinger Bands, with a low at 0.717 and a high of 0.773 observed.
• A key support at 0.72–0.725 was retested multiple times, showing temporary resilience after the selloff.

24-Hour Price Summary and Context

Liquity/Tether (LQTYUSDT) opened at 0.75 on 2025-10-03 12:00 ET, hit a high of 0.773 and a low of 0.717, and closed at 0.721 as of 2025-10-04 12:00 ET. Total volume across the 24-hour 15-minute chart was approximately 681,103.35 units, with a total turnover of $489,106. The pair experienced a broad range of price movement, reflecting significant volatility and bearish momentum in the latter half of the session.

Structure & Key Levels

The 24-hour chart displayed a bearish structure with price breaking key support levels at 0.735 and 0.725 before finding temporary support near 0.72. A bearish engulfing pattern formed on the candle ending at 0.721, confirming continued downward pressure. A potential pivot point may be forming near 0.72–0.725, which could serve as a near-term support. A doji formed near 0.73, indicating a temporary pause in the downtrend.

Technical Indicators: Momentum and Volatility

The RSI entered oversold territory below 30 during the final hours of the session, suggesting possible short-term buying interest or a bounce. MACD crossed into negative territory with a bearish divergence, reinforcing the downward trend. Bollinger Bands expanded during the selloff, with price closing near the lower band at 0.721. This suggests a high level of volatility and potential for a countertrend move if support at 0.72 holds.

Volume and Turnover Analysis

Volume spiked significantly during the selloff between 15:30 and 16:00 ET, with over 21,771 units traded and a turnover of around $15,959, confirming bearish conviction. However, volume declined after 0.725 was retested, indicating a possible exhaustion of selling pressure. The lack of volume during the attempted rebounds suggests limited follow-through buying, but the strong volume during the low suggests a key psychological level may be in play.

Backtest Hypothesis

The backtesting strategy involves entering short positions when RSI falls below 30 and MACD confirms with a bearish crossover, while also placing a stop-loss just above the nearest Fibonacci 38.2% retracement level from the recent high. The strategy also includes a take-profit level at the next key support near 0.715. Given the current setup, the strategy could have captured the 0.72–0.717 decline with a risk-reward ratio of approximately 1:1.5 if triggered at 0.73.